New Delhi-India (Feb 27) Gold prices dipped by Rs 40 to Rs 29,250 per ten gram at the bullion market today on waning spot demand from jewellers amid a weak global trend. Silver also followed suit and plunged by Rs 600 to Rs 36,600 per kg on reduced offtake by industrial units and coin makers.

Bullion traders said a weak trend overseas as the dollar ticked up and European shares extended their rally, reducing appeal of the precious metals, weighed on the prices.

Besides, a fall in demand from jewellers in domestic spot market resulted in the slide.

Globally, gold fell 0.88 per cent to USD 1,221.80 an ounce in New York yesterday, while silver fell 2.85 per cent to USD 14.67 an ounce.

In the national capital, gold of 99.9 and 99.5 per cent purity fell by Rs 40 each to Rs 29,250 and Rs 29,100 per ten grams respectively. It had gained Rs 190 in the previous two sessions.

Sovereign, however, remained steady at Rs 23,000 per piece of eight grams in limited deals.

Tracking gold, silver ready lost Rs 600 to Rs 36,600 per kg and weekly-based delivery by Rs 815 to Rs 36,250 per kg.

Silver coins fell by Rs 1,000 to trade at Rs 54,000 for buying and Rs 55,000 for selling of 100 pieces.